Microsoft and Google jointly building new WinPhone YouTube app with ads

Microsoft and Google are pulling together to build a Windows Phone YouTube app that will serve ads and abide by Google's demands.

The Next Web reported on Friday that the rival companies have made amends and are collaborating on an update that will appease both parties. The new YouTube app is expected to release on the Windows Phone Store sometime in June.

“Microsoft and YouTube are working together to update the new YouTube for Windows Phone app to enable compliance with YouTube’s API terms of service, including enabling ads, in the coming weeks," said Microsoft and Google in a joint statement. "Microsoft will replace the existing YouTube app in Windows Phone Store with the previous version during this time.”

Read: WinPhone YouTube app update removes downloads to appease Google

The Windows Phone YouTube app recently updated after Google had asked Microsoft to remove it from the Windows Phone Store completely. Google had expressed concerns over a video-download feature and the shortage of advertisements within the app.

Microsoft originally added the video-download feature and removed ads in early May, but Google immediately sent a cease and desist letter and requested that Microsoft remove the app and disable existing downloads by May 22, 2013.

Microsoft removed the video-download feature in the Windows Phone YouTube app on 22 May, the same day as Google's deadline, but the app continued to block Google's ads. Microsoft this week told Wired that Google had "refused to work with us" to develop a YouTube app that was comparable with other platforms.

Today's joint statement means Windows Phone users will soon be able to enjoy a Google-endorsed YouTube app from Microsoft.